Revenue from for Uber's passenger services grew far more rapidly than for its delivery offerings. Photo / Marcos del Mazo, LightRocket via Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden.
International
US
US markets were all trading lower this morning. At the time of writing the S&P 500 was down 1.2 per cent, the Nasdaq Composite was 1.0 per cent lower and the Dow Jones Industrial Average was 1.3 per cent lower.
Uber traded 10.6 per cent higher. Earnings exceeded expectations.
Thanks to a robust demand for ride services, Uber reported a revenue of US$8.82 billion for the first quarter 2023. Uber’s quarter one trips grew 24 per cent, up from the 19 per cent recorded in the previous quarter, driven by enhanced driver and consumer engagement.
Additionally, mobility trip growth was strong, registering a 32 per cent increase.
Pfizer (-0.8 per cent) delivered quarterly results reporting revenue and earnings.
The company reported first-quarter 2023 sales of US$18.28b and earnings per share of US$1.23 adjusted despite decline in sales due to lower demand of the Covid vaccine.
Amazon has announced a new offering, Fire Channels, a free streaming service for live TV.
The introduction of Fire TV Channels reinforces Amazon’s commitment to providing a no-cost, ad-supported TV experience. The platform is set to launch with 400 channels. Amazon shares were trading up 1.2 per cent at the time of writing.
Commodities
Brent Oil is currently trading down 4.7 per cent at US$75.6 a barrel, while gold is trading 1.5 per cent higher to US$2023.40 per ounce.
The US 10-year Treasury bond fell 15 basis points to a yield of 3.45 per cent.
Rest of World
Asian markets closed in the green overnight. The Shanghai Composite traded 1.1 per cent higher, the Nikkei gained 0.1 per cent and the Hang Seng index rose 0.2 per cent.
European markets were lower overnight. The FTSE and Stoxx 600 both decreased 1.2 per cent.
British energy company BP (-8.6 per cent) beat its first quarter 2023 profit expectations posting underlying replacement cost profit - which it uses as a proxy for net profit - of US$4.96b for the first quarter.
This is a rise from the previous quarter but down from the profits seen in the first quarter in 2022 during the times of volatile oil and gas pricing where BP reported a profit of US$6.2 billion. BP also announced a further share buyback of US$1.75b.
New Zealand
The NZX 50 ended the day in the green with a 0.3 per cent increase.
Comvita provided a trading update yesterday, reporting that despite negative impacts from some of New Zealand’s extreme weather conditions, they were still experiencing strong demand and market share among their Mānuka honey, Propolis, and Olive leaf extract products.
They ended the day with a 6.4 per cent gain.
Comvita is forecasting strong demand from markets for delivery in quarter four of 2023 to record levels and expected this trend to continue into quarter one of 2024 based on early indications.
Manawa Energy announced it secured the rights to develop a 230-megawatt wind generation project in the central North Island between Taihape and Waiouru.
Manawa ended the day with a 1.0 per cent increase.
The full development of Project Horikawa is expected to take at least three years. The wind development is expected to produce around 800 gigawatt-hours of electricity each year – enough to power 100,000 average New Zealand homes.
Fletcher Building rose 3.0 per cent. During a conference presentation, it said it had a “strong, enduring financial position” and was “well positioned for a softer 2024.”
Its target for earnings before interest and tax for the financial year was $800 million to $855 million.
Eftpos provider Smartpay Holdings reached a 20-year high after gaining 3.7 per cent to $1.70.
Australia
The ASX 200 traded 0.9 per cent down at close yesterday with all sectors falling into the red.
Australian shares declined in their biggest drop in weeks following the Reserve Bank of Australia’s decision to hike rates.
The Real Estate sector was the worst performing with a decrease of 2.1 per cent.
The Reserve Bank of Australia surprised the markets with a raise in the cash rate to 3.85 per cent. The 0.25 percentage point increase was unexpected.
In a policy statement, the central bank said although inflation had passed its peak, it remained too high, and higher rates were needed to bring it under control.
The board had held interest rates steady last month to provide additional time to assess the state of the economy and its outlook.
Energy and industrial stocks fell on open yesterday alongside the weaker crude oil prices. Whitehaven Coal lost 2.3 per cent, Santos fell 1.1 per cent and Woodside Energy declined 1.6 per cent.
Qantas announced the appointment of Vanessa Hudson as their first female CEO, succeeding Alan Joyce in November 2023. Vanessa Hudson has been with the company for 28 years, and currently holds the position of Group Chief Financial Officer and Senior Vice President for Qantas across the Americas and New Zealand. Qantas shares closed the day down 3.0 per cent.
Supermarket giant Woolworths has reported an 8.0 per cent increase in sales to A$16.34 billion in the company’s third quarter trading update for the 2023 financial year. This figure is up from A$15.12 billion reported quarter three last year and on the back of benefits from the easing of supply chain pressures higher prices for goods alongside domestic food inflation. The share price ended the day down 0.8 per cent.
Coming up today
US: ADP Employment, S&P Global Composite PMI, ISM Services.
Eurozone: Unemployment.
Australia: Retail Sales, Amcor Q3 Earnings, Rio Tinto AGM.
NZ: Employment.
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All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
The NZX 50 rose by 0.15% to 12,480.05 as Fonterra performed strongly.